- The blockchain analytics platform, the continent’s most populated country, also has the highest share of retail users conducting transactions under $10,000.
- A customer of the United Bank for Africa (UBA) was fined 100 million nairas for digital-currency transactions. On the other side, Fidelity Bank Plc, a full-fledged commercial bank, was fined 14.3 million nairas.
- Nigeria’s financial regulator, the Securities and Exchange Commission, announced the establishment of a research section eight months after the ban as part of its effort to oversee the industry.
The Central Bank of Nigeria (CBN) has levied sanctions as part of its attempt to combat corruption. The sanctions are part of the Central Bank of Nigeria’s (CBN) efforts to discourage cryptocurrency use and impose commercial limitations on cryptocurrency trading. The Central Bank of Nigeria (CBN) has sanctioned three Nigerian commercial banks for failing to comply with a regulatory order prohibiting clients from trading in cryptocurrencies.
Penalties Imposed By The CBN
The financial firms were punished for violating a bitcoin trading limit imposed a year ago, according to a recent Bloomberg story. Stanbic IBTC Bank, the domestic unit of Standard Bank Group Ltd., was fined 500 million nairas by the CBN for two accounts allegedly used for crypto transactions.
According to the filing with Nigerian Exchange Ltd, Access Bank Plc, the country’s largest lender, was fined 100 million nairas for failing to deactivate customer crypto accounts. A customer of the United Bank for Africa (UBA) was fined 100 million nairas for digital-currency transactions. On the other side, Fidelity Bank Plc, a full-fledged commercial bank, was fined 14.3 million nairas.
Stanbic IBTC’s Chief Executive Officer, Wole Adeniyi, stated that the bank complied with central bank regulations, but that sanctioned transactions may have gone undetected through its system. Adeniyi further claimed that the central bank was able to detect the relevant transactions thanks to advanced capabilities that even the country’s leaders lack. The platform has encouraged the central bank to make the technology available to the public. The executive opined:
Nigeria’s Cryptocurrency Situation
They don’t appear to be interested in a refund, but they are now sharing intelligence with us in order to prevent clients. Nigeria isn’t exactly a crypto-friendly country. However, outside of the United States, the West African country has the highest volume of bitcoin transactions. According to Chainalysis, the blockchain analytics platform, the continent’s most populated country also has the highest share of retail users conducting transactions under $10,000.
The CBN issued an order in February to cancel the accounts of holders who transacted in or operated cryptocurrency exchanges. The central bank had written the circular to domestic financial institutions, threatening them with harsh regulatory penalties if they did not comply. Nigeria’s financial regulator, the Securities and Exchange Commission, announced the establishment of a research section eight months after the ban as part of its effort to oversee the industry.
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Source: https://www.thecoinrepublic.com/2022/04/10/banks-are-being-fined-by-the-nigerian-central-bank-for-allowing-cryptocurrency-transactions/